Euro hits resistance 21/6/2023

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The EUR/USD pair found difficulty in breaching the strong resistance level published during the previous technical report at 1.0940, explaining that it represents the key to the continuation of the upward attempts, which forced the pair to trade in negativity, recording its lowest level at 1.0892.

On the technical side, and despite the bearish bias that occurred yesterday, we notice the continuation of the move above the simple moving averages, which supports the bullish bias, in addition to the beginning of the appearance of positive features on the stochastic to gain additional momentum.

With intraday trading stable above 1.0900 and in general, above 1.0860, the bullish scenario remains valid and effective, we need to witness a clear breach of the strong resistance level 1.0940, and that enhances the chances of touching 1.0970 and 1.1000, respectively. The gains extend later towards 1.1075, the official target.

Closing of an hourly candle below 1.0860 leads the pair to a bearish path, aiming to retest 1.0800, the 61.80% correction, before attempting to rise again, taking into consideration that the decline below 1.0800 extends the pair’s losses, as we await touching 1.0730.

Note: Today we are awaiting high-impact economic data issued by the British economy, the annual “consumer price index”, “the testimony of the Federal Reserve Chairman” on the semi-annual monetary policy report before the House Financial Services Committee. We may witness a high price fluctuation during the news release.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1.0860	R1: 1.0940
S2: 1.0800	R2: 1.0975
S3: 1.0730	R3: 1.1000